The British Bankers’ Association, a financial lobby group, proposed creating an independent council to promote a new code of conduct for bankers after scandals eroded trust in the industry.
The code would guide banks on pay, what’s expected of boards and controls to prevent unethical behavior, the London-based BBA said in a submission to parliament published today.
The plan comes after banks set aside about 11 billion pounds ($17.7 billion) to compensate customers mis-sold loan insurance and the Libor scandal. Royal Bank of Scotland Group Plc, Britain’s biggest government-owned lender, may pay as much as 500 million pounds in fines next week to settle allegations traders tried to rig interest rates, two people with knowledge of the matter said. Barclays Plc was fined 290 million pounds in June for manipulating Libor.
The proposed Banking Standards Review Council “would need to be independent of the industry” with a non-banking chairman and a majority of non-banking members, including customers, the lobby group said in its submission to the Parliamentary Commission on Banking Standards.
The new Financial Conduct Authority regulator could also help develop a blacklist of employees to prevent certain individuals from working in banking or financial services, the BBA said.
-- Editors: Jon Menon, Stephen Taylor